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closing 4o1K - Florida

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Blake Moores

Junior Member
I started a 401k in 2007 for my dental office with 7 employees. In 2008 the management company informed us that the plan needed to now be restated (EDTRA) FOR $1500. After complaining that knowing this was likely when we formed the 2007 plan (for $1975), why did we need to pay this additional cost? They agreed to reduce the restatement by $500. We pay a quarterly fee of approx. $500. In 2009 my CPA and CFP agreed it was not cost or tax efficient so I decided to close the plan. The management company now wants:
Restatement fee: $1000 (even though we never told them to restate)
Valuation report: $1374
2006 PPA checklist: $100 ( We started the plan in 2007????)
2007 interim amendment: $150
2009 interim amendment: $250
Prep 2010 termination amendment: $175
Prep Board Resolution - plan termination: $100
Processing of participant distribution (7): $525
Total cost: $3674
Does all this seem reasonable?
 
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